Workplace plans shoulder growing burden as financial strain and coverage gaps persist

For working Americans, the workplace remains the primary gateway to both retirement savings and health coverage. But even as employer plans retain their central role, financial strain and uneven access are limiting how well these benefits deliver lasting financial stability.

A new national survey from CAPTRUST finds that financial worry is now a defining feature of the modern workplace. Drawing on responses from more than 4,300 employees at 795 organizations, the firm reports that 62% of participants describe their financial stress as moderate to severe. Nearly three quarters say that stress undermines their motivation on the job, with anxiety, sleeplessness, and declining morale emerging as common consequences.

For retirement plan sponsors and benefits leaders, these findings push financial wellness beyond employee assistance and firmly into workforce risk management. When employees feel financially off track, they are more distracted, less productive, and more likely to pursue higher-paying roles, even if that means sacrificing plan tenure or employer matching contributions.

Many employers are responding by expanding workplace financial wellness offerings, providing personalized education, guidance, and access to one-on-one advice to help employees better manage their financial lives.

Employees who use financial wellness resources report lower levels of severe stress and a stronger sense of progress toward financial goals, but many still describe themselves as off track.

That tension highlights a critical issue for plan sponsors: annual enrollment meetings and static plan communications are no longer sufficient. Workers increasingly expect ongoing, individualized support that connects retirement savings decisions with budgeting, debt management, emergency savings, and health care costs.

Employer Health Coverage Still Dominates — With Gaps

At the same time, fresh analysis from the Employee Benefit Research Institute shows that employment-based health coverage continues to dominate as the primary source of insurance for working-age Americans, even as access has become more uneven across employer sizes.

Historically, roughly seven in ten non-elderly Americans received coverage through an employer. Today, that figure has declined to about six in ten.

Large organizations have steadily maintained (and even slightly increased) their health benefit offer rates over time. Mid-sized employers show similar stability. The erosion in access has been concentrated among small employers, where cost pressures and administrative complexity pose the greatest challenges.

For many households, a single large workplace plan now functions as the central hub for both health and retirement benefits. Decisions in one area often affect the other. Rising health care costs can crowd out 401(k) contributions, while inadequate savings can make employees more sensitive to premium increases and cost-sharing.

Traditional plan design alone will not neutralize employee financial stress, but employers are increasingly open to integrating financial wellness programs, data-driven communication, and personalized advice into core workplace offerings.

Advisors can help align retirement and health benefits with real-world financial pressures through emergency savings features, targeted communications, and coordinated education around both health plan selection and retirement contributions.